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When to Choose an Intentionally Defective Grantor Trust (IDGT)

An Intentionally Defective Grantor Trust (IDGT) is a useful tool for families and individuals who have appreciating assets, such as a family business or real estate. It allows the grantor to transfer appreciating assets, while minimizing tax exposure. By establishing an IDGT, the grantor pays income taxes on trust assets, allowing them to grow tax-free for the benefit of future generations. The unique structure significantly reduces the size of the grantor’s estate while shifting valuable assets out of it, avoiding substantial estate taxes down the line. An intentionally defective grantor trust is drafted using language that contains “intentional defects.” These are provisions that make the trust meet the definition of a revocable trust for income tax purposes, while also being considered an irrevocable trust for estate tax purposes. For a revocable trust, income is usually taxed to the grantor of the trust who is treated as the owner for tax

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Planning for the TCJA Sunset: What Do American Families Need to Know?

Many people assume that the Federal Estate Tax won’t apply to their family based on the current ceiling and the value of their assets today. This ceiling is about to be lowered however, so there are many more American families who need to sit down with their estate planning attorney and review their options. As the Tax Cuts and Jobs Act (TCJA) of 2017 approaches its sunset in January 2026, families with substantial but not necessarily ultra-wealthy estates need to start considering their estate planning strategies. Planning that takes into account the TCJA sunset is not just for the ultra-wealthy, it is also important for affluent but not ultra high net worth American families, whose assets may grow significantly due to investment returns. For instance, a $10 million estate could potentially double every decade with a 7.3% annual return, quickly exceeding future exemption limits. Planning now ensures that families can

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Get Back to Your Estate Plan!

If you are like me and like many friends and colleagues you’ve been all geared up and getting ready to get back to school. Whether you have your own children in school or grandchildren or nieces and nephews or you are sending kids off to college, it feels like September is really the time when the year begins. This serves as a reminder that summer ends all too quickly and it feels like another year has gone by and things can change quickly and life just happens. Preparing for change is a big part of what we do and planning for life’s unexpected events that just happen. We could spend our days worrying about what’s in store for us around the corner or we can take time to plan in the event of a health issue or an unexpected passing of a family member so that our wishes are followed

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Attorney Alison Farquhar Joins Estate Planning Practice at Orsi Arone Rothenberg Turner, LLP

“We are excited to welcome Alison to the firm. And we look forward to the contribution she will make to our practice.” – Rob Arone Alison Farquhar is an experienced attorney with a background in estate planning as well as estate and trust administration. Alison’s practice will encompass assisting clients with a wide of range of estate planning matters, and estate and trust administration strategies. Her experience includes drafting wills and trusts and advising and representing clients on matters of tax controversy. Alison has represented clients in Massachusetts Probate and Family Court and before the Internal Revenue Service, Massachusetts Department of Revenue, and the United States Tax Court, in matters of probate, tax controversy, and tax collections. She also has extensive experience doing tax preparation for individuals, small businesses, S-corporations, and estates and trusts. Alison received her J.D. and LL.M. in Taxation from Suffolk University Law School in 2018. She received

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Estate Planning Lessons for Family Businesses and Holdings from the Boston Celtics Sale

Not long after winning their 18th championship, the Boston Celtics made a major announcement that rocked the basketball world. The team announced that the majority owners were selling their stake. Co-governor Wyc Grousbeck emphasized that the decision was rooted in the importance of family and revolved around family planning and estate planning considerations. “It’s not my majority stake,“ Grousbeck said. “The control of the team is owned by my family.” “It’s a family that I belong to and then I have the Celtics family that I also belong to.” “The family has been involved for 22 years.” The Celtics’ payroll is projected to surpass $200 million next year, and will be subject to a substantial luxury tax bill. Franchise valuations have soared, with the Celtics being the most significant team to enter the market in recent times. Important considerations in family estate planning and succession planning include minimizing tax liabilities,

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